Japan's 10-Year Yield Hits 2.83%, Yen Falls to 40-Year Low Amid Expansionary Fiscal Plan

According to market data, Japan's 10-year government bond yield surged to 2.83% yesterday (July 6), marking its highest level since October 1996 as the government announced plans for 10 trillion yen in annual fiscal expansion starting next year. The so-called "Honebuto" stimulus package, which removed fiscal consolidation language from previous policy guidelines, triggered large-scale bond selloffs. The yen-dollar exchange rate concurrently broke through 162, approaching its weakest level in approximately 40 years since the 1985 Plaza Accord, heightening concerns over currency instability.
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